by Fiat stops importing 500e electric cars to Australia
Fiat has halted deliveries of its only two new models sold in Australia — the Fiat 500e and Abarth 500e. The reason was the inability to compete with cheaper Chinese cars. This decision has put the brand in a difficult position and sparked rumors of a possible full exit from the Australian market due to declining sales.
High prices and low demand
Demand for both 500e models was never high, mainly due to their high cost. At launch, the standard Fiat 500e cost from 52,500 Australian dollars (about 36,800 US dollars), and the Abarth version from 58,990 Australian dollars (about 41,300 US dollars). Such prices are typically characteristic of mid-size SUVs, including electric ones.
Later, Fiat significantly reduced prices on both cars — in some cases by more than 20,000 Australian dollars (14,000 US dollars), but this did not help stimulate demand. According to sources, the remaining five dealerships selling Fiat passenger cars have not received new factory shipments of the 500e for some time. The company also has 14 showrooms for Fiat Professional vans.
Official confirmation
Earlier this week, Stellantis confirmed it is stopping imports of the 500e models — the only two passenger cars still being supplied to the country. The gasoline-powered Fiat 500 and Abarth 695 have already been discontinued, with only remaining stock left. The Scudo and Ducato vans remain on sale for now.
Sales collapse
According to Car Sales, Fiat’s sales volumes in Australia have fallen by 30 percent since the start of the year. A total of only 144 cars were sold during this period, of which just 13 were sold in June. For comparison, Ferrari sold 16 cars, and Lamborghini sold 18. Thus, two brands dealing in exotic cars with six-figure price tags outperformed Fiat’s sales by 23 and 38 percent respectively in the same month. Stellantis says it remains committed to the Australian market, but with such low volumes, it may be difficult to justify the investment needed to support the brand.
“As part of Stellantis Australia’s ongoing portfolio and product planning process, the availability of specific models may change over time as we assess market demand and future product opportunities. We continue to focus on ensuring that the vehicles we supply to Australia meet customer expectations,” Stellantis stated.
“Stocks of the Fiat 500e and Abarth 500e in Australia are now largely sold out, and at this stage, we do not plan additional orders while we assess future product opportunities for the local market. We continue to support our Fiat and Abarth customers, as well as the dealer network, and look forward to sharing more detailed information about future Fiat and Abarth plans in Australia in due course,” the company added.
A sign of future changes?
Earlier this month, another Stellantis brand, Peugeot, announced it was ending its partnership with Australian distributor Inchcape. This means Stellantis will control the company’s local operations itself. Last week, local media reported that Peugeot has completely stopped providing cars to the press, stating it would no longer offer them to journalists. Peugeot sales have also fallen sharply, as the French brand failed to compete with new players, mainly from China. Its sales have dropped by more than 32 percent since the start of the year.
The situation in the Australian market demonstrates how the rapid rise of Chinese automakers is shifting the balance of power. Even well-known brands like Fiat are being forced to rethink their strategy to avoid losing ground. Fiat’s high prices for electric cars turned out to be a critical factor, making them uncompetitive. Meanwhile, Stellantis’s decision to take control of Peugeot’s distribution may indicate an attempt to centralize management and optimize costs, which will likely also affect Fiat’s future in the region. If sales continue to decline, it is quite possible that the brand could completely leave the Australian market, focusing on more profitable areas such as commercial vans.
